# U.S. Senate Democrats target Big Oil for carbon polluters fund
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-08-04
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Democratic U.S. Senators Unveil $500B 'Polluters Pay
Meta Description: Proposed legislation by Democratic senators seeks to establish a $500 billion fund to be financed by major fossil fuel companies to tackle climate change.
URL: https://financedigest.com/u-s-senate-democrats-target-big-oil-for-carbon-polluters-fundhtml

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By Richard Cowan

WASHINGTON (Reuters) – A group of Democratic U.S. senators on Wednesday unveiled legislation establishing a $500 [billion fund](https://www.financedigest.com/uk-investors-add-1-2-billion-to-equity-funds-in-march-calastone.html "UK investors add .2 billion to equity funds in March – Calastone") to be financed by Big Oil and other “carbon polluters” that they hope to attach to broader climate control legislation expected later this year.

Modeled after the 1980 “Superfund” program in which [polluters pay](https://www.financedigest.com/eu-agrees-law-to-make-airlines-pay-more-to-pollute.html "EU agrees law to make airlines pay more to pollute") the costs of cleaning up hazardous substances from contaminated lands, the EPA and Treasury Department would identify the nation’s largest “fossil fuel company polluters,” according to Senator Chris Van Hollen.

He said an estimated 25 to 30 of the biggest U.S.-based “polluters” would be required to contribute to the [fund over 10 years](https://www.financedigest.com/new-foresight-smart-bonds-fund-attractive-fixed-returns-and-a-choice-of-one-two-or-three-year-terms.html "New Foresight Smart Bonds Fund – Attractive Fixed Returns and A Choice Of One, Two Or Three Year Terms"). He did not identify individual [companies that could be targeted](https://www.financedigest.com/britain-toughens-up-diversity-targets-for-uk-companies.html "Britain toughens up diversity targets for UK companies").

Next week, Senate Democrats are [expected to advance a budget plan](https://www.financedigest.com/british-pm-sunak-expected-to-shelve-plans-to-privatise-channel-4-ft.html "British PM Sunak expected to shelve plans to privatise Channel 4 -FT") that would be the precursor to a $3.5 trillion “human infrastructure” bill Congress would debate this fall.

The bill would include significant investments in programs to tackle [climate change](https://www.financedigest.com/exclusive-world-bank-seeks-more-funds-to-address-climate-change-other-crises-document.html "Exclusive-World Bank seeks more funds to address climate change, other crises -document") by reducing the release of carbon dioxide and other greenhouse gases into the atmosphere.

Republicans are likely to oppose the effort, prompting Democrats to employ a “budget reconciliation” effort that would let them [pass such a bill](https://www.financedigest.com/dollar-rises-as-u-s-debt-bill-passes-house-euro-slides-ahead-of-inflation.html "Dollar rises as U.S. debt bill passes House, euro slides ahead of inflation") through the Senate by a simple majority in the 100-member chamber, instead of the 60 votes needed for most legislation.

During a [press conference](https://www.financedigest.com/5-top-tips-when-holding-a-crisis-press-conference.html "5 Top Tips When Holding a Crisis Press Conference") to unveil the legislation, Van Hollen, along with fellow Democratic Senators Edward Markey and Sheldon Whitehouse, did not assess their chances of winning the support of all 48 Senate Democrats and two independents for their initiative.

Asked whether one of the most moderate Senate Democrats, Joe Manchin of coal-producing West Virginia, could be won over, Van Hollen said only that the two would discuss the [“Polluters Pay Climate](https://www.financedigest.com/eu-to-urge-big-polluters-to-toughen-climate-pledges-by-cop27-summit-draft.html "EU to urge big polluters to toughen climate pledges by COP27 summit – draft") Fund” idea.

The [fund would not be instead of a possible carbon tax](https://www.financedigest.com/uk-drops-plan-to-tax-sovereign-wealth-funds.html "UK drops plan to tax sovereign wealth funds") or other steps aimed at reducing carbon emissions, according to the senators.

It is a fixed penalty to [provide a block](https://www.financedigest.com/patsnap-provides-foundation-block-for-clean-tech-rd-research.html "PatSnap provides “foundation block” for clean-tech R&D research") of compensation,” Whitehouse said, to “clean up the mess that they knowingly cause.

(Reporting by Richard Cowan; Editing by Dan Grebler)


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